Lending

Overview

Qaay’s Lending Service enables users to allocate eligible digital assets from their Savings Value into structured lending contracts to earn a predictable yield. Each contract defines the asset, duration, and yield rate, which are set based on Qaay’s oracle-driven analysis of liquidity and demand.

The service operates within Qaay’s centralized infrastructure using a structured Lending Pool model. Lending and borrowing occur in parallel to support crypto-based financing, with contracts managed through Qaay’s liquidity system. The Qaay Oracle synchronizes capital routing and borrower demand. If Lending supply is temporarily inactive, borrowing may still be available through the platform’s diversified liquidity, subject to capacity and risk limits.

Lending is structured, contract-based, secured, and transparently managed by the platform.

Key Concepts

term (English)	facing definition (English)
Lend	Allocating eligible cryptocurrency from your Savings Value into a fixed-term Lending contract to earn yield.
Savings	The internal Qaay account balance that is eligible for allocation to Lending.
Account Credit Line	The internal credit account. Funds must be transferred to Savings before initiating Lending.
Lending Pool (LP)	A secured and structured pool where lent assets are held and managed by the platform.
Lending Contract	An agreement specifying the asset, duration, yield rate, and operational terms.
Lent Amount	The amount allocated to a specific Lending contract.
Contract Duration	The selected period during which the Lent Amount remains locked.
APY (Annual Percentage Yield)	The annualized return rate applied to the Lent Amount.
Tier	The user level that determines applicable yield conditions.
Accrued Yield	The profit is calculated separately for each contract.
Settlement Date	The monthly yield is credited to the Savings account.The principal is returned to the Wallet at maturity.
Wallet	The internal Qaay wallet where profit and principal are deposited.
Cancel Contract	Terminating a Lending contract before maturity under specified conditions.
Cancellation Fee	The predefined fee is applied upon early termination of the contract.
Activated	The contract has been approved and confirmed by the system.
Active	The contract is currently running, with capital allocated within the Lending Pool.
Completed	The contract has matured and been fully settled.
Cancelled	The contract was terminated before maturity.
Start the Countdown	The 72-hour cancellation processing period begins once a cancellation request is submitted.

Lend (Lending):

• Lending: The lending window in Qaay Zone, where you create a lending position.

• Asset: The cryptocurrency you choose to lend (e.g., USDT, BTC).

• Time Period: The fixed duration your asset will be locked for lending (e.g., 6 months).

• APY (Annual Percentage Yield): The estimated yearly return you earn from lending (e.g., 18% APY).

• Amount: The quantity of the selected asset you want to lend.

• Max (button): Fills in the maximum amount you can lend.

• Max Amount: The highest available balance you can lend for the selected asset.

• Quick Percent Buttons (25% / 50% / 75% / 100%): Shortcuts to select a percentage of your available balance as the lending amount.

How Lending Works

The Lending Service uses a structured Lending Pool architecture. When a user activates a contract, funds are transferred from the Savings Value into the Lending Pool, where they remain secured under platform custody for the contract duration.

Qaay acts as the platform counterparty and risk manager, facilitating algorithmic capital flow between Liquidity Providers and Borrowers without direct user-to-user exposure. The platform enforces contractual rules, manages collateral, supervises repayment, and ensures security mechanisms are executed if obligations are not met. This structure removes the need for direct financial dependency or interaction between individual users.

Qaay’s liquidity engine allocates capital between the Lending Pool and stability reserves, which serve as execution buffers to maintain consistent service during market volatility. This design preserves system stability and strengthens Lending confidence

Qaay’s oracle system dynamically selects eligible cryptocurrencies for Lending based on real borrower demand. Contract duration and yield rate are calculated by oracle-driven predictive algorithms and reviewed monthly for updates. This recalibration ensures liquidity balance and risk optimization.

The Lending Pool uses synchronization algorithms to match available capital with borrowing demand in real time. These algorithms analyze variables such as loan amount, borrower Tier, and LTV constraints to ensure optimal allocation without manual intervention.

To participate in Lending, users must maintain an active Qaay account with a sufficient Savings Value. Only Savings Values are eligible for Lending. If funds are in the Account Credit Line, transfer them to Savings before activating Lending.

No minimum allocation amount is required to start a Lend contract. Users may create a contract with any amount available in Savings (up to the available balance), provided the selected asset is currently eligible for Lending.

The selected cryptocurrency must be currently enabled for Lending by the oracle system. During contract creation, the user selects the asset, contract duration, and allocation amount. The platform displays the corresponding APY for the selected duration. If the contract period is shorter than one year, profit is calculated proportionally to the selected term.

Yield conditions may depend on the user’s Tier level. All contract parameters, including cancellation fee and maturity timeline, are transparently displayed before activation.

Once activated, the Lending contract moves to “Activated” status and then transitions to “Active” when capital is fully allocated in the Lending Pool. During the Active phase, the Lent Amount remains locked for the contract duration.

Yield is calculated separately for each contract. On the 28th day of each month, earned profit is automatically transferred to the user’s Savings account without requiring manual action. Users may choose to receive profit in the same cryptocurrency as the contract or in Qaay Token. Selecting Qaay Token increases the yield by 2 percent.

At contract maturity, the status changes to “Completed,” and the original principal is automatically returned to the user’s Wallet with any final profit settlement.

If the user initiates cancellation, the contract status changes to “Cancelled,” and the “Start the Countdown” process begins. The 72-hour cancellation period is displayed as a countdown timer in the user panel. During this period, no profit accrues, and funds remain locked with the principal amount fixed. After the countdown, the principal amount, adjusted for any cancellation fee, is transferred back to the account according to contract terms.

Contracts that have matured or been cancelled appear in the Past section of the Lending page. Currently running contracts appear in the Active section. Full historical transparency is maintained for review at any time.

Best Practices

Lending should be treated as a structured financial agreement with predefined duration and settlement rules. Since capital remains locked during the contract period, users should allocate only assets not needed for short-term liquidity.

Users should review APY differences across contract durations and consider how Tier level may affect returns. Choosing profit distribution in Qaay Token increases yield but may expose users to token price variability.

Understanding the cancellation process is important. While cancellation is permitted at any time, the 72-hour processing period and associated fee should be considered in liquidity planning.

The Lending Service is designed to provide predictable yield within a secured and supervised ecosystem. Effective participation requires awareness of contract duration, settlement cycles, cancellation conditions, and internal balance allocation rules.